Cognex Corporation (CGNX)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	915,950	825,325	1,004,230	1,034,800	812,977
Property, plant and equipment	US$ in thousands	98,445	105,849	79,714	77,546	79,173
Fixed asset turnover		9.30	7.80	12.60	13.34	10.27

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $915,950K ÷ $98,445K
= 9.30

Cognex Corporation's fixed asset turnover has shown fluctuations over the past five years. In December 2020, the fixed asset turnover was 10.27, indicating that the company generated $10.27 in net sales for every dollar invested in fixed assets. This metric improved significantly to 13.34 by December 2021, suggesting an increase in efficiency in utilizing fixed assets to generate revenue.

However, in the subsequent years, there was some fluctuation in the fixed asset turnover ratio. By December 2022, the ratio decreased slightly to 12.60, signaling a slight decrease in efficiency in utilizing fixed assets to generate sales. The trend continued in December 2023, with a more notable decline to 7.80, possibly indicating challenges in optimizing the productivity of fixed assets during that period.

In the most recent year, December 2024, the fixed asset turnover ratio improved to 9.30, although it was still lower than the peak observed in 2021. This improvement suggests that the company may have taken steps to enhance the utilization of fixed assets to drive revenue generation.

Overall, the trend in Cognex Corporation's fixed asset turnover shows some variability, with notable improvements in certain years and slight declines in others. Further analysis and consideration of the company's operational and strategic factors may be necessary to accurately assess the implications of these fluctuations on its overall performance and efficiency in managing fixed assets.